Due Care Is

question 30

Multiple Choice

Due care is

• A) based on the principle of caveat emptor.
• B) based on the principle "let the buyer beware".
• C) the idea that consumers and sellers do not meet as equals and that consumer's interests are particularly vulnerable to being harmed by the manufacturer.
• D) based on the principle of absolute liability.

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Definitions:

Best Efforts Basis

A commitment to perform a task to the best of one's ability, often used in financial transactions to indicate that an underwriter or other party will endeavor to sell as much of an offering as possible without guarantees.

IPO Issues

Refers to the various considerations and challenges that arise during the Initial Public Offering process when a company goes public and offers shares to the public for the first time.

Shelf Prospectus

A regulatory document filed by a company that allows it to issue shares to the public without having to re-file with the securities commission for each offering.

Syndicated Offering

A financial transaction in which multiple lenders or underwriters jointly provide funds or purchase a security issuance.